NeoGames has published its financial statements for Q3 of FY2021, revealing adjusted EBITDA has decreased by 3.8% year-on-year as the company invested in its long-term growth strategy.
Revenues for the period ending September 30 were $11.9m, down 9.2% from 2020’s total of $13.1m.
However, the company gained from its collaborative venture with Pollard Banknote; its share of revenue from NeoPollard Interactive increased 233.2% year-on-year to $8.3m.
Consequently, total revenue plus the share of NPi revenue totalled $20.2m in Q3, an increase of 29.7% year-on-year.
Furthermore, NeoGames’ Network Net Gaming Revenue was $179m during Q3, compared to $126m during the third quarter of 2020, representing an increase of 42.1% year-on-year.
However, adjusted EBITDA decreased by 3.8% to $7.5m in Q3, indicating rising costs as the firm continued to invest in its growth strategy.
CEO, Moti Malul, commented: “We continue to position ourselves well for the long-term, investing in our technology solutions and our operational capabilities and executing on our business plan as a global leader of ilottery solutions for national and state-regulated lotteries.
“This quarter, we have seen growth in several of our accounts with Virginia and North Carolina in the US continuing their good performance, while in Europe Sazka’s online penetration has ramped up to represent a significant percentage of their total GGR.”
NeoGames continued to invest in its operations throughout Q3; rolled out progressive jackpot instant content with three customers representing ‘innovative development’ for its ilottery customers.
Furthermore, it launched a sports betting venture in Alberta, following on from the introduction of ‘Live Dealer’ in the province.
During Q3, the firm went live with Ceasars Entertainment in Arizona as part of their Liberty platform, operating in 10 states with an online sports betting or igaming offering.
Finally, the firm announced the commencement of an underwritten public offering of almost 3.5m ordinary shares by certain shareholders, granting underwriters a 30-day period to purchase an additional 500,000 shares at a discounted underwritten rate.
Malul added: “We also continue to invest in PlayAlberta, as we launched draw games late in the second quarter, and launched sports betting in August. On the state authorisation front, momentum has progressed in the US, with Connecticut and West Virginia in various stages of public procurement processes, which we see as a positive step towards further market expansion.
“All of these highlights reflect our ability to capitalise on our expanding market opportunity and cement NeoGames as the leader in the industry.”
